Millions of Americans can expect to get a refund from their insurance companies this year, at an average of about $80 dollars per family, thanks to a little-known Obamacare provision that’s helping people save money on their premiums. According to a new report released by the Health and Human Services Department on Thursday, Americans across the country have received a total of $1.9 billion dollars in rebates since this provision first took effect in 2011.

Obamacare’s medical loss ratio provision — which is also frequently referred to as the “80/20 rule” — requires insurers to spend at least 80 percent of every American’s premium costs on their medical care, rather than on the company’s own profits or administrative overhead. If insurance companies don’t hit the right balance, they have to issue a refund check to their customers to make up for it.

According to HHS’s calculations, 6.8 million Americans will save $330 million in refunds this year because of the 80/20 rule. Insurance companies are required to provide those reimbursements by no later than the beginning of August. Not everyone will actually receive a physical check in the mail; insurers are allowed to apply the reimbursements to future premiums, so the savings could show up that way.

In a press release announcing the new data, HHS Secretary Sylvia Burwell said that the health reform law is giving Americans a “better value for their premium dollars.” The whole point of the 80/20 rule is to encourage insurance companies to operate more efficiently and cut down on their overhead — and it’s slowly working. The portion of premium dollars allocated to insurers’ profits and administrative costs dropped from 15.3 percent in 2011 to 11.7 percent in 2013.

HHS estimates that if insurers weren’t making those type of changes, Americans would have likely paid about $3.8 billion in additional premiums in 2013. Altogether, since the medical loss ratio took effect three years ago, the administration calculates that it’s averted $9 billion dollars worth of unnecessarily high insurance premiums.

The 80/20 rule isn’t the only Obamacare provision that seeks to keep premium costs affordable. The health law also extends federal subsidies to help Americans purchase plans on the individual market in the new state-level insurance exchanges, something that allows millions of people to buy health care for less than $100 each month. However, under a lawsuit against the health law that could make its way up to the Supreme Court, those subsidies could be put into jeopardy in the majority of states in the country. If that happens, insurance premiums could increase by about 75 percent.

The critics have as their priority trying to destroy the Obama administration. Saving money and lives is of no concern to them. Whenever I have posted similar links all they do is to criticize but offer nothing in the way of valid refutation of the truths I post. This is why none of them reply to your OP.

How much were people paying before Obama Care and what restrictions did they have? How much under Obama Care are they paying now, and what restrictions are there? Then talk to me about the "refund" people will be getting.

If everything is better, yay! But I just wouldn't take this at face value because, of course, government (or any other organization) is going to put the best spin on things right?

For everyone concerned about how Obamacare and Steve Beshear’s Kynect health care marketplace would lead the entire Commonwealth straight down the road to hell where we would all exist in Obama-controlled internment camps, this map of expanded insurance coverage since the introduction of Obama’s Affordable Care Act should terrorize you:

Health Care Reform has always been an issue and has always been on the table. But this Obamacare... no sir... not this. The only reason it passed was because the GOP did not have the numbers to stop it.

So let's put the blame were it belongs... fully on the Democrat Party.

For everyone concerned about how Obamacare and Steve Beshear’s Kynect health care marketplace would lead the entire Commonwealth straight down the road to hell where we would all exist in Obama-controlled internment camps, this map of expanded insurance coverage since the introduction of Obama’s Affordable Care Act should terrorize you:

Health Care Reform has always been an issue and has always been on the table. But this Obamacare... no sir... not this. The only reason it passed was because the GOP did not have the numbers to stop it.

So let's put the blame were it belongs... fully on the Democrat Party.

Blame for what?

More insured Americans?

Health insurance for those with pre-exsisting conditions?

Not getting dropped because you get sick?

No DEATH PANELS!

Poor people getting insured?

Sure it is not a perfect system, their is no such thing, but it is better than before.

I still think a public option would have been better, maybe that comes later.

If the house had one idea.....just one....maybe that could have been debated.

If the house had one idea.....just one....maybe that could have been debated.

That is hilarious!

The House was Democrat controlled when it passed. The House changed hands because of this disaster. Regardless the House is only one half of Congress and with Prince Reid controlling the Senate nothing gets debated. Oh well... November may tell a different story.

The House was Democrat controlled when it passed. The House changed hands because of this disaster. Regardless the House is only one half of Congress and with Prince Reid controlling the Senate nothing gets debated. Oh well... November may tell a different story.

No matter. It is unsustainable.

Yes they did have control.

Other than trying to repeal Obamacare 50 plus times what alternatives did the Republicans have?

The GOP wants it repealed, they do not want to be a part of its failure.

And why shouldn't the law be enacted as it was passed by the Democrats? What is Obama and the Democrats afraid of? I mean it is so wonderful and we should all be so thankful for Obamacare... why the hold up?

And no... this is an all Democrat law... not a rehashed GOP idea. Try as they may the Dems have to live with it... sadly we do as well.

The GOP wants it repealed, they do not want to be a part of its failure.

And why shouldn't the law be enacted as it was passed by the Democrats? What is Obama and the Democrats afraid of? I mean it is so wonderful and we should all be so thankful for Obamacare... why the hold up?